Shenzhen boss owed 8.6 million yuan in payments—how long will litigation take? What are the chances of winning? A lawyer tells you with real cases.
Mr. Liu runs an electronic components trading company in Futian, Shenzhen. Last year, a client in Longhua owed him 8.6 million yuan in payments, which was delayed for a full 14 months. He went to the client's company three times to demand payment, but the client's response shifted from "we'll definitely pay next month" to "the company is having difficulties," and eventually they stopped answering his calls altogether. The first question Mr. Liu asked us was — Lawyer, how long will a lawsuit take? I've heard it drags on for two or three years, and by then my company would have collapsed long ago.
This concern is very common among people doing business in Shenzhen. As a long-established law firm practicing in Shenzhen for 26 years, we have represented over 10,000 civil and commercial cases. Today, we will only address one thing: for a contract dispute filed in Shenzhen, from filing the case to actually receiving the money, how many days will it take, and what are the actual chances of winning.
Many business owners' understanding of the litigation cycle is still stuck a decade in the past. According to data released by the Shenzhen Intermediate People's Court, the average trial period for civil and commercial cases in the Shenzhen court system has in recent years been reduced to 6-8 months. For sales contract disputes with clear facts and unambiguous legal relationships, the statutory time limit for concluding cases under the summary procedure is 3 months (Article 164 of the Civil Procedure Law), while under the ordinary procedure it is 6 months (Article 152).
But note, this is only the "trial" period. You may also need to factor in the 7 days for case filing review, the 15-30 days for service of process, and the enforcement phase after the judgment takes effect. So without any variables, for an ordinary contract dispute case in Shenzhen, from filing the complaint to receiving the enforcement payment, the ideal timeline is 8 to 10 months.
We handled a typical case in Futian District. A construction company owed a supplier 8.6 million yuan for steel, and the supplier entrusted us to file a lawsuit. After analyzing the opposing party's assets and liabilities, we advised the client to simultaneously apply for pre-litigation property preservation, freezing two of the opposing party's bank accounts and one matured account receivable. On the 21st day after the accounts were frozen, the opposing party proactively approached us to request mediation. In the end, from case filing to execution and recovery of payment, it took only 4 months—cutting the average trial cycle in Shenzhen by more than half.
The legal basis behind this is Article 577 of the Civil Code of the People's Republic of China (hereinafter referred to as the "Civil Code"): where one party fails to perform its contractual obligations or renders performance that does not conform to the agreement, it shall bear liability for breach of contract such as continued performance, remedial measures, or compensation for losses. At the evidentiary level, the key footholds are the contract gap-filling rules under Article 510, as well as Articles 626 and 627 concerning the time limits for payment of the purchase price.
The first thing: verify the counterparty's business registration information and litigation records. Does the counterparty have any litigation in Shenzhen Nanshan, Bao'an, or Longhua? Are they more often the defendant or the plaintiff? Are there any enforcement records against them? This data can be checked on tools such as "Qichacha." For companies with excessive litigation or even those already listed on the dishonesty blacklist, you may not be able to recover the money even if you win the case.
Second matter: confirming evidence of fixed debts. Many parties only have delivery notes in hand, without statements of account. Where the contract does not stipulate a payment deadline, pursuant to Article 510 of the Civil Code, the parties may supplement the agreement by negotiation; if no supplementary agreement can be reached, the matter shall be determined in accordance with the relevant terms of the contract or with trade practices. Therefore, before filing a lawsuit, we usually assist the parties in organizing all materials that can prove the parties' trade practices, such as WeChat chat records, email correspondence, transfer remarks, and the like.
The third matter: calculate the limitation period. The limitation period for goods payment disputes is three years, calculated from the date when the right holder knows or should know that their rights have been infringed. If more than three years have passed and there is no evidence of interruption of the limitation period, the court may rule to reject the claim.
Litigation fees are collected proportionally based on the claim amount. Calculated on a claim amount of 8.6 million, the case acceptance fee is approximately 72,000 yuan. If the summary procedure applies, the fee is halved, amounting to roughly 36,000 yuan. After this fee is prepaid, if you win the case, you may request that the losing party bear the cost. The application fee for property preservation is capped at 5,000 yuan, and this amount can likewise be claimed from the opposing party. Lawyer fees vary considerably across different law firms, and most civil and commercial cases adopt a model combining contingency fees with a base fee. In the vast majority of contract disputes in Shenzhen, where the evidence is complete and the defendant has the capacity to perform, the actual ultimate recovery often depends not on whether the court rules in your favor, but on whether the opposing party's assets can be traced and frozen.
Yes. Our team has handled a batch of similar cases. The focus was not on whether a paper contract existed, but on whether the goods were actually delivered and whether the amounts could be reconciled. As long as the identity of the person who signed the delivery note matched the agreement in the contract, or the other party acknowledged payment in WeChat, the court generally found that a contractual relationship was established. The key is a complete chain of evidence, not the written word "contract."
In 2023, the team led by Director Attorney Shen Jinlong of Zhiming Law Firm represented a major construction equipment supplier in Shenzhen in a contract dispute. The defendant was a subsidiary of a listed company, owing 8.6 million yuan in arrears, overdue by more than 16 months. Upon accepting the engagement, we did not immediately file a lawsuit. Instead, we spent 12 days reviewing the parent company's public financial reports and the voucher records of the affiliated company's accounts receivable. We then filed the case with the Longgang District Court in Shenzhen and applied for preservation of a maturing wealth management fund held by the defendant at a bank branch in Shenzhen. On the 45th day after filing, the defendant proactively sought a settlement. The case was ultimately concluded with the principal of 8.6 million yuan plus overdue interest of approximately 308,000 yuan calculated based on the LPR, with all payments received within 4 months.
This case was resolved quickly thanks to Director Shen's 26 years of courtroom experience and his precise judgment on preservation timing. As a Master's graduate from Fudan University and a Senior Economist, his original "Zhiming Art Litigation" methodology system has won dual innovation awards from both the provincial and municipal bar associations. Its core philosophy is: never fight an unprepared battle—first seal off the opponent's retreat, then proceed with litigation.
The odds of winning a contract dispute are never decided at the moment the hearing begins. The work done in the 30 days before filing often determines whether you get your money back in 4 months or end up with a judgment after two years of litigation. If you are currently facing issues such as delayed payments, contract breaches, or debt recovery, you are welcome to visit Guangdong Zhiming Law Firm for a face-to-face consultation. Address: Room 1802, Tower A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen. Tel: 0755-25986969. Before coming, it is recommended that you bring your existing contract, delivery documents, and chat records between both parties. In 30 minutes, we will help you identify gaps in your evidence and outline an initial litigation strategy.
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